The Triborough Bridge and Tunnel Authority sold $296.3 million in bonds to finance transit and commuter improvements included in the Metropolitan Transportation Authority’s (MTA) capital plan.
The bonds mature between 2034 and 2054, yielding between 2.52% and 3.88%. They pay interest at 5%. The securities received a rating of AA+ from Fitch Ratings, AA+ from S&P Global Ratings, and AA+ from Kroll Bond Rating Agency.
The rating “reflects the solid growth prospects of the dedicated revenue stream and ample resilience of the bond structure,” Fitch analysts wrote.
The issuance comes ahead of the MTA’s expected launch of congestion pricing, which will impose a toll on vehicles entering much of downtown Manhattan. The program could be a boon for the heavily indebted MTA. Transit officials expect that the plan could generate up to $1 billion in additional revenue for the authority, which has $47 billion in outstanding debt.
The Triborough Bridge and Tunnel Authority is a component of the MTA that operates seven bridges and two tunnels in New York City. The bonds are special obligations of the Triborough Bridge and Tunnel Authority, payable by a pledge of state payroll taxes and fees.
Jefferies LLC served as lead underwriter on the issuance, purchasing the bonds for $331.7 million. The price reflected a premium of $37.6 million and a discount of $2.3 million. Public Resources Advisory Group, Inc and Sycamore Advisors, LLC acted as financial advisors.